29th Jan 2014 09:03
LONDON (Alliance News) - Roxi Petroleum PLC Wednesday said pilot production at its 34%-owned Galaz block started on January 19, following key approvals.
The oil and gas company with operations in Kazakhstan said the contract area of the Galaz block in the central part of the country was extended on January 10 and now includes an area on a significant fault system.
The company said the operator of Galaz, LGI Corp, has invested USD34.4 million so far into the project via loans and paid a further USD15.6 million for a 40% holding of the site.
Roxi said a total of 30 square kilometres of 3D seismic has been acquired and processed for the Galaz block.
Three successful wells have been drilled at Galaz since 2012, including the NK-7 site which successfully tested oil at a daily rate of 186 barrels of oil per day at 6 millimetres choke size and 300 barrels per day at 7 millimetres choke size.
The company said it has gone into test production at the NK-14 well, which has currently drilled to 603 metres and is expected to be complete by the end of February.
Roxi said it is also planning to start test production at the NK-24 well in early February, which will be the first well on the newly extended Galaz zone.
The company said Wednesday the gross pilot production from its existing wells is 875 barrels of oil per day, with 300 net to Roxi.
Roxi Petroleum shares were up 6.2% to 4.38 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
RXP.L